The investment objective of this fund is to provide its investors with opportunities for an open-ended scheme as well as the ability to achieve long-term growth. The fund mainly invests in midcap private equity shares.
Mid-cap fund: The fund has a 95.22% investment in Indian stocks, with 0.88% in large-cap stocks, 58.81% in mid-cap stocks, and 29.56% in small-cap stocks.
Ms. Andani is a B.Com (H) and CA.
Experience: She worked with ING Investment Management Private Limited before joining SBI Mutual Fund. Ltd., ASK Raymond James & Associates Pvt. Ltd., LKP Shares & Securities Ltd., Advani Share Broker Pvt. Ltd., CRISIL, and K R Choksey Shares & Securities Pvt. Ltd.
SBI Magnum Midcap Fund – Suitability
When you invest for seven years or more, you can expect returns that comfortably beat the inflation rate and are higher than fixed income options.
It is a fund that invests in medium-sized enterprises. Due to declining stock prices, these funds fall more than those investing in large companies. So you can expect higher long-term returns, but more severe fluctuations along the way.
Investors want to invest money for at least 3-4 years and are looking for high returns. At the same time, these investors should also be prepared for the possibility of moderate losses in their investments.
SBI magnum midcap facts
- The SBI Magnum Midcap Fund invests the rest assets in other equity and bond-related instruments (including large-cap and small-cap) and debt and money market instruments.
- The fund mainly invests in midcap stocks (minimum 65 percent).
- It follows a mix of growth and investment value styles, following a bottom-up stock selection approach across fund sectors.
- The SBI Magnum Midcap Fund aims primarily to provide long-term capital growth opportunities by investing in a well-diversified portfolio of equity stocks of midcap companies.
- SBI Magnum Midcap Fund has been performing for a long time. The scheme has weakened its category and benchmark over the past three-year. Surprisingly, in the last three years, the scheme could not even beat bank deposits.
- Mutual fund advisors believe that fund managers play a much more significant role in mid-cap funds than large-cap funds. They say that fund managers have to make the right call at the right time to make a profit for their investors.
- The scheme invests around 79% in midcap, 18% in small-cap, and about 3% in large-cap stocks.
The plan provided a 10-year return of 10.64% and thus reduced the category average (12.87%) but managed to defeat the benchmark index (9.93%). There has been a steep decline in the scheme in the last year. As per SEBI guidelines, the universe has been halved from 300 to 150 stocks for midcap stocks, and thus recently, the portfolio of the scheme has been restructured.
Note: Currently, the scheme has 60 stocks under Kitty and was significantly more diverse and less volatile than its peers. The scheme is a reasonably high-risk plan and is suitable for more than five years.